Types of Business Loans: What Your Options are

1. Types of Business Loans: What Your Options are There are varieties of business loans, and there is no perfect one for everyone, but different businesses also have different needs. The right loan will depend on what kind of loan you need for your company too. Here are the options: SBA Loans: These government-guaranteed loans, usually via a bank or credit union. Requires 25% down and averages 4-5%. Preferred due to lower interest rates and higher repayment terms than typical bank loans CA Loan: unsecured, personal unsecured lines that require 1% down and average 10% with variable terms depending on credit score Debt Consolidation: lending institutions explicitly created to lend money to small businesses often require an income history and equity built up as you use the loan. Hence, it's suitable for those who don't have money to invest anymore. There are challenging and soft credit pulls – hard ones, like CA loans, hard ones will lower your score; soft ones will not. Also known as a "credit builder."

2. Word of Mouth: friends and family may be willing to lend you money (for consideration like interest or collateral) Merchant Cash Advance: typically requires that you sell your future sales at an attractive discount today, but there isn't usually much paperwork involved; some companies offer this type of funding without any out-of-pocket cost to the merchant. Line of Credit: available only if you already do business with a bank or credit union; requires a good credit score and offers lower interest rates etc. More options are available, especially if you're willing to look into some more creative options like peer-to-peer lending or peer-to-business lending. Again, there isn't a single solution for every business owner, and it depends on the types of business loans and terms you need.